The Free-Agent Workforce: Leading in 3D

Article first published as The Free-Agent Workforce: Leading in 3D on Technorati.

I was talking to a group of leaders recently about a change initiative that was clearly falling apart before their eyes.  One of the more senior managers in the group was lamenting about how much harder this change was from another similar change he presided over several years ago.  The group felt like they were pulling all the right levers, but none of them worked anymore.  Something big had happened inside their workforce.

This leadership team was facing a phenomenon I’m seeing more and more – managers trying to “steer the ship” to get results, only to realize they are flying a plane instead. And if you ask any Navy pilot, the big difference between sailing and flying is that a plane moves in three dimensions, where a ship only travels in two.  Up and down isn’t an option on the water, but it’s everything in the air.

In the same way, there’s a new dimension to the workforce that fundamentally changes the levers you use to manage and lead - the free-agent perspective of knowledge workers.  Increased access to information and a stronger sense of purpose and self-determination, coupled with a lack of trust in the traditional organization, all add up to a mindset in the workplace that “we’re all just here for a little while.” 

Authors like Seth Godin and Daniel Pink have been writing about the Free Agent Nation phenomenon and its implications since the late 90’s, but the main focus has been on “going 1099,” not free agency inside the organization.  In an excellent new Kindle book called The Blue Jean Manifesto, Julie Maloney does a great job of describing the new knowledge worker mindset and the strategies these workers are beginning use to manage their careers as a series of projects inside the big house.  I was struck not just by the implications for workers, but the huge impact it has on how those workers are managed and led.

There’s a lot of data to back up Maloney’s claims about the new workplace.  For example, a recent study by the Bureau of Labor Statistics shows that between the ages of 18-44, people change jobs/companies an average of 11 times. I personally know a lot of folks that average more than 1 manager per year, even while staying in the same job. 

So with employees changing managers faster than they can wear out a pair of sneakers, what’s the impact on how they regard you as a leader?  Put on your 3D glasses, and you’ll see a new set of questions your people are asking themselves:

• You may not be the one writing my review next year.  How much does your opinion matter?
• Your Big Bet Change Initiative may take longer to implement than either of us will be in our jobs.  Is it easier just to keep nodding but passively resist?
• New positions resulting from organizational churn are like cool shiny objects floating around the organization every day. How long should I tolerate this heavy-handed manager who keeps trying to control me?
• Cutbacks in the company healthcare plan and the increased use of long-term vendors make it seem like taking a contractor role could be more lucrative – and even more stable.  Why should I stay with the company at all?

The good news is that leading this free-agent workforce can be a lot more fun than traditional management.  And the skills you need for this new era have been proven out over many years, because they work with just as well with “lifers” as they do with free agents.  In my next post, I’ll cover the core elements of this approach.  But for now, take a look at yourself and the team you lead as a collection of people who may just be passing through on their way to the next assignment.  Seeing that third dimension is the first step to navigating this new world of work as a leader.

Gen Y: Embrace a little hierarchy?

More and more studies are being published about the unique needs and expectations of the Gen Y’ers coming into the workforce today.  Generation Y, also known as Millennials or  “Echo-Boomers,” are the 70+ million born between the late 1970’s and early 2000’s.  But there’s something bugging me about the coverage on this emerging workforce.  Every report seems to be telling organizations to make significant changes in order to accommodate Gen Y’s needs, as though the corporate world is an ecosystem of dinosaurs that needs to catch up or become extinct.

At the risk of creating my Most Unpopular Blog Post Ever, I’m going to swim against the current and try to balance things a bit.  I don’t do this as the defensive reaction of a late boomer – I do this as someone who has watched too many Millennials stall their early career growth by expecting the workplace to tailor itself to their style.

Now before you throw me in with the dinosaurs, let me say two things. 

First, Gen Y, we love you.  Studies have shown that you’ve grown up swimming in activities and focusing on results – you’re no stranger to hard work and you’re oriented around performance.  You also attach meaning to your work – you’re on a mission that’s greater than just personal success.  We desperately need more of this in the workplace.

Second, I want to acknowledge that the modern organization is still very much a work in progress, and that the shortcomings of too many managers sometimes make work, well, suck.  More than once have I walked out of a meeting resolving to move to the Bahamas to set up a margarita shack on the beach and never look back. 

That said, surveys on Gen Y tell us that this growing segment of the workforce carries a perception of the workplace as an outdated, hierarchical structure, full of rigid rules and baby-boomer managers who are top-down control freaks.  A generalization of Gen Y perspective, for sure; but statistically, no less valid than saying that Gen Y’ers attach meaning to work more than other generations.

What I see here is a two-fold challenge for Gen Y being successful early in their careers.  First, some mistaken beliefs about management need to be cleared up.  And second, Millennials may need to manage their expectations and meet the modern organization halfway to be successful. 

Why management and hierarchy?

Management and the corporate org chart have been vilified in the blogosphere by Gen Y, to the degree it seems we’re forgetting why these staples of corporate life even exist, so let’s quickly revisit.

Contrary to popular belief, the purpose of management is not control, it’s specialization.  Managers lead distinct teams focused on a function or purpose that serves the larger organization.  This is true of both very traditional organizations and highly agile organizations that reconfigure frequently around shifting priorities.  As one who has led organizational realignments and worked in both types of organizations, I can tell you that specialization works.  Ten thousand workers randomly trying to design, build and market a new car or piece of software would never get anywhere without the power of specialization that structure and management provides.

Unfortunately, those new to the workforce are typically not used to working in an environment where they are a piece of a piece of something larger.  Even in the most collaborative of work settings, effectively taking direction from others is not just an attitude or preference, it’s a critically important job skill.  A study by Careerbuilder.com states that “over half (55 percent) of employers over the age of 35 feel Gen Y workers have a more difficult time taking direction or responding to authority than other generations of workers.” 

While every other generation has faced the struggle of adapting to the workplace, the unique challenge I’ve seen with Millennials is that they perceive this struggle as a reflection of a cultural barrier and an outdated mindset of the company, instead of as a signal to grow new skills. This frame of reference puts the source of both the problem and the expected solution on the organization instead of the employee, so the employee can’t do anything about it except get frustrated.

From aspiration to expectation

This perspective of Gen Y is complicated by another factor that can make it tougher for them to adapt to the workplace – expectations.  Studies also show that Gen Y’ers tend to expect many things early in their career that previous generations did not expect until later in their careers, if at all.  In the same Careerbuilder.com study:

• 74 percent of employers said Gen Y workers expect to be paid more
• 61 percent said Gen Y workers expect to have flexible work schedules
• 56 percent said Gen Y workers expect to be promoted within a year
• 50 percent said Gen Y workers expect to have more vacation or personal time

When you couple together high expectations of advancement, flexibility and benefits with a difficulty in taking direction and responding to authority, Gen Y’ers can find themselves frustrated and misunderstood when they have trouble showing up well in the workplace.

Meeting in the middle

Generation Y presents a massive opportunity to employers today, and they own that opportunity as much as employers do. Expecting that the world of work will tailor itself en masse to this generation of workers quickly is unlikely, especially in areas where expectations may not match the realities of how organizations function.  As a friend of mine once said, “Sometimes it’s easier to put on slippers than to get someone to carpet the world.”

New models for organizing work will continue to emerge, and I expect that Gen Y leaders will play a big role in developing them.  In the meantime, my hope is that Gen Y can embrace a little hierarchy and, just as Boomers and X’ers have, develop new skills and perspectives that enable them to meet management in the middle.  Their ability to adapt will define how well they can maximize their impact in early part of their careers.

And a final thought.  Today’s workplace has at least three distinct “generations” on the payroll.  But every person in the workforce is unique, regardless of generational labels.  Each person brings their own approach and value proposition, and can position themselves early for success.  My recommendation to anyone coming into the workforce at any age is to watch, learn, add value and do what works.  From there, you gain influence and authority to create the kind of workplace that matches your vision.